There are many types of chocolate out there, some higher quality than others. What are the main differences between good quality chocolate and cheap chocolate? And in practical applications in baking and confections, what "benefits" do higher quality chocolate offer?

Are you just asking about solid chocolate, instead of powder or liquid? And can you be more specific about "good" and "bad"? Are you talking about taste, price, or texture, for example?
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KatieKFeb 8 '12 at 1:12

@KatieK, I feel like my question as is, is pretty self explanatory. I didn't use good/bad. I used good quality/cheap so price is already implied.
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JayFeb 8 '12 at 14:14

5 and 6 go more to texture. You may find mass market Easter chocolate has a grainy texture -- That's poor conching.

Then the recipe has to be taken into account as well. Cocoa butter has value outside of chocolate making, and it may be replaced with cheaper oils (Hydrogenated coconut or palm oils for example.)

The cocoa solids themselves may be adulterated with cheaper ingredients to stretch the yield. And the mass producer's favorite weapon is more sugar. If you make it sweet enough, a lot of people won't notice the low quality product.

I'd recommend that you go out and buy a Lindt 70% cocoa bar and give it a taste. While not necessarily the best chocolate out there, it is readily available, and of a decent quality.